Fisher's equation: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Spacing 27/8/13) |
imported>Doug Williamson (Classify page.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 3: | Line 3: | ||
A formal expression of the quantity theory of money defining the relationship between the quantity of money in the economy, its velocity of circulation, the number of transactions over a given period and the general level of prices. | A formal expression of the quantity theory of money defining the relationship between the quantity of money in the economy, its velocity of circulation, the number of transactions over a given period and the general level of prices. | ||
The equation is conventionally expressed as: P = MV/T | The equation is conventionally expressed as: | ||
P = MV / T | |||
Where: | Where: | ||
P = the general level of prices | :P = the general level of prices, | ||
M = the quantity of money in the economy | :M = the quantity of money in the economy, | ||
V = its velocity of circulation, | :V = its velocity of circulation, | ||
T = the volume of transactions in a given period. | :T = the volume of transactions in a given period. | ||
== See also == | == See also == | ||
* [[Quantity theory of money]] | * [[Quantity theory of money]] | ||
[[Category:The_business_context]] | |||
Latest revision as of 14:44, 1 July 2022
Economics.
A formal expression of the quantity theory of money defining the relationship between the quantity of money in the economy, its velocity of circulation, the number of transactions over a given period and the general level of prices.
The equation is conventionally expressed as:
P = MV / T
Where:
- P = the general level of prices,
- M = the quantity of money in the economy,
- V = its velocity of circulation,
- T = the volume of transactions in a given period.
